Actually i don't know. Some kind of drag and drop into the WYSIWYG-editor would be optimal IMO. When you save the image could be automatically uploaded to a /img folder.
I just want to remove as many distracting factors as possible, clicking, and managing image uploading is one of them.
I am glad you like the idea. If you decide to give it a try and fail/need help/lack motivation hit me an e-mail at jontelang [at] gmail. I really want to see this implemented but I have little to none time right now.
Edit: thanks, I like that idea!